Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Dick's Profit Spikes after Penguins, Cavaliers Success

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Dick's Profit Spikes after Penguins, Cavaliers Success

Article excerpt

Dick's Sporting Goods' second quarter profit beat its projections and the company raised its earnings guidance for the full year, but officials said the impact of competitors closing stores has yet to be determined.

The Findlay-based retailer reported consolidated net income for the quarter of $91.4 million, or 82 cents per share. That's higher than the company's prediction provided on May 19 of earnings per share in the range of 62 cents to 72 cents.

In the same period last year, Dick's reported profit of $90.8 million, or 77 cents per diluted share.

Analysts expected an average of 69 cents per share for the quarter, according to Thomson Reuters.

Going into the quarter, the company had expected headwinds from the closures of competitors - The Sports Authority and Sport Chalet - as going-out-of-business deals could take a bite out of Dick's sales. But liquidations at the rival retail operations were completed sooner than anticipated, CEO Edward Stack told analysts in a call on Tuesday.

Another boost to Dick's sales were championship wins for the Pittsburgh Penguins hockey team and Cleveland Cavaliers basketball team, both markets where the company has a significant presence.

Net sales for the quarter increased 7.9 percent to about $2 billion. Online sales comprised about 8.5 percent of net sales, up from 7.3 percent a year ago.

Consolidated same-store sales - a number that only counts stores open at least a year - increased 2.8 percent, compared to the company's guidance of negative 4 percent to negative 1 percent.

Still, the full impact of the closures of Sports Chalet and The Sports Authority is not clear. "There is still some uncertainty about how much business may have been pulled forward during these liquidations, particularly in some of the important back-to-school categories such as footwear and apparel," Mr. …

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